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In Year 1,Chandler Company purchased equipment with an expected useful life of 5 years.The initial cost of the equipment was $85,000.Chandler's cost of capital is 12%.At the time it purchased the equipment,Chandler projected the following cash inflows from use of the equipment:
At the end of Year 5,the equipment had reached the end of its useful life.Chandler determined that it had actually generated the following cash flows:
(PV of $1 and PVA of $1)(Use appropriate factor(s)from the tables provided.)
Required:
1)What was the net present value that Chandler calculated for the equipment when the company purchased the asset?
2)Calculate the net present value that the equipment achieved,based on the actual cash inflows.
3)Comment on the pattern of actual cash inflows,compared to the cash flows that had been projected.
4)Was the equipment in fact an acceptable investment,based on the cash flows actually achieved?
Domination and Submission
A form of sexual or lifestyle power exchange where one person consensually controls another, either in a particular scene or as part of a relationship dynamic.
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A state of emotional suffering characterized by symptoms of depression and anxiety, often as a result of adverse life circumstances or mental health issues.
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Individuals who have reached the age of consent and are legally and mentally capable of agreeing to participate in sexual activities.
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